CEFC China pledges over USD3bn medium-term investments in Romanian Rompetrol

CEFC China plans to invest over USD 3bn in consolidating the Rompetrol Petromidia position in the Black Sea, after taking over the refinery from the KMG International, according to the news daily Adevarul, quoting an interview of a Rompetrol representative for Kazakhstan media. In addition, the Chinese group aims to extend Rompetrol presence in the Mediterranean region, where the company already operates a trading, wholesale and distribution structure. The investments in the Black Sea region would envisage only the Rompetrol refinery, Petromidia, specifically in expanding its refining capacity. As for this year, Rompetrol plans to continue modernization works in the Petromidia refinery, to open a new production facility in the petrol-chemistry field, to continue rebranding process and expand the distribution network in Romania and neighboring countries.

KMG International took over the former Rompetrol Group and has more than 48% in the Petromidia refinery, while the state has nearly 45%. The Kazakh group decided to sell 51% in Rompetrol to the Chinese CEFC and the deal entered final stage in December last year. Petromidia ensures more than 40% of Romania’s refining capacity and is the country’s biggest refinery. It is also among the country’s major exporters. The deal between KMG and CEFC was temporarily blocked for about a year because Romania’s prosecutors have seized the refinery’s assets in a corruption investigation regarding Petromidia’s privatization from early ’00.

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